KUALA LUMPUR: Inter-Pacific Research is maintaining its Neutral on Genting Plantations on Genting Plantations at the current price of RM6.09 and target price of RM6.64 following the inclusion of the Kabupaten Sanggau land, Kalimantan Barat, Indonesia.

It said on Monday, Feb 8 that it can expect Genting Plantations to increase its landbase to 85,000 hectares in Indonesia with majority of it not expected to contribute any significant impact to its bottomline over the next five years.

"We reiterate NEUTRAL and our fair value stands at RM6.64 based on the estimated FY10 EPS of 45.8 sen with a PER of 14.5 times," it said.

Genting Plantations Bhd recently announced that its unit Sanggau Holdings Pte Ltd had entered into a JV with Palma Citra Investama Pte Ltd and PT Sawit Mandira to develop about 17,500 hectares of agricultural land into oil palm plantation in Kecamatan Toba, Kabupaten Sanggau.